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1 – 10 of 856Dong-lin Chen, Min Fu, Meng-Di Yao and Lei Wang
The purpose of this paper is to analyze the optimal competition or cooperation decision between technology service platforms and governments in the context of fierce competition…
Abstract
Purpose
The purpose of this paper is to analyze the optimal competition or cooperation decision between technology service platforms and governments in the context of fierce competition within urban agglomerations.
Design/methodology/approach
Based on the cooperation and competition game model, this study builds a two-level model for government and technology service platforms considering three cases: perfect competition, platform cooperation and government-led cooperation.
Findings
By analyzing the optimal strategies of the government and a platform in three cases, the research shows that choosing appropriate cooperation in a competitive situation is beneficial to both the government and the platform. Government-led cooperation is conducive to increasing social welfare. From the perspective of the platforms, if they actively seek cooperation, they can obtain higher subsidies and profits. The more intense the competition is, the higher the profits and social welfare generated from the platforms' active cooperation.
Practical implications
The contribution of this study relates to the development of technology service platforms in urban agglomerations. As local governments and platforms continuously undertake decision-making processes, this study constructs quantitative models to analyze the advantages and disadvantages of competition and cooperation. It is worth noting that relying on government subsidies to maintain the sustainable development of technology service platforms is not a long-term solution. Government subsidies play a vital role in the initial development of technology service platforms. The analysis results are in line with Guo et al. (2016), Jung and Feng (2020) and Li (2021) conclusions. Furthermore, long-term government subsidies will make platforms dependent on these subsidies. These are the contributions to the scientific literature.
Originality/value
Instead of focusing on vertical relationships, this study emphasizes the horizontal cooperation and competition relationship between platforms and local governments in an urban agglomeration. Thus, the vertical effects of government subsidies on platforms can be investigated. Another innovation is the social welfare policy goal, which is an important index for the development of urban agglomerations.
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Yixin Liang, Xuejie Ren and Lindu Zhao
The study aims to address a critical gap in existing healthcare payment schemes and care service pricing by recognizing the influential role of patients' decisions on…
Abstract
Purpose
The study aims to address a critical gap in existing healthcare payment schemes and care service pricing by recognizing the influential role of patients' decisions on self-management efforts. These decisions not only impact health outcomes but also shape the demand for care, subsequently influencing care costs. Despite the significance of this interplay, current payment schemes often overlook these dynamics. The research focuses on investigating the implications of a novel behavior-based payment scheme, designed to align incentives and establish a direct connection between patients' decisions and care costs. The primary objective is to comprehensively understand whether and how this innovative payment scheme structure influences key stakeholders, including patients, care providers, insurers and overall social welfare.
Design/methodology/approach
In this paper, we propose a game-theoretical model to incorporate the performance of self-management with the demand for healthcare service, compare the patient's effort decision for self-management and provider's price decision for healthcare service under a behavior-based scheme with that under two implemented widely payment schemes, that is, co-payment scheme and co-insurance scheme.
Findings
Our findings confirm that the behavior-based scheme incentives patient self-management more than current schemes while reducing their possibility of seeking healthcare service, which indirectly induces the provider to lower the price of the service. The stakeholders' utility under various payment schemes is sensitive to the cost of treatment and the perceived health utility of patients. Especially, patient health awareness is not always benefited provider profit, as it motivates patient self-management while diminishing the demand for care.
Originality/value
We provide a novel framework for characterizing behavior-based payment schemes. Our results confirm the need for modification of the current payment scheme to incentivize patient self-management.
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Raouf Boucekkine, Carmen Camacho, Weihua Ruan and Benteng Zou
The authors characterize the conditions under which a country may eventually split and when it splits within an infinite horizon multi-stage differential game.
Abstract
Purpose
The authors characterize the conditions under which a country may eventually split and when it splits within an infinite horizon multi-stage differential game.
Design/methodology/approach
In contrast to the existing literature, the authors do not assume that after splitting, players will adopt Markovian strategies. Instead, the authors assume that while the splitting country plays Markovian, the remaining coalition remains committed to the collective control of pollution and plays open-loop.
Findings
Within a full linear-quadratic model, the authors characterize the optimal strategies. The authors later compare with the outcomes of the case where the splitting country and the remaining coalition play both Markovian. The authors highlight several interesting results in terms of the implications for long-term pollution levels and the duration of coalitions under heterogenous strategies as compared to Markovian behavior.
Originality/value
In this paper, the authors have illustrated the richness of the simplications of enlarging the set of strategies in terms of the emergence of coalitions, their duration and the implied welfare levels per player. Varying only three parameters (the technological gap, pollution damage and coalition payoff share distribution across players), the authors have been able to generate, among other findings, quite different rankings of welfare per player depending on whether the remaining coalitions after split play Markovian or stay precommited to the pre-splitting period decisions.
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Enoch Owusu-Sekyere, Helena Hansson, Evgenij Telezhenko, Ann-Kristin Nyman and Haseeb Ahmed
The purpose of this paper was to assess the economic impact of investment in different animal welfare–enhancing flooring solutions in Swedish dairy farming.
Abstract
Purpose
The purpose of this paper was to assess the economic impact of investment in different animal welfare–enhancing flooring solutions in Swedish dairy farming.
Design/methodology/approach
The authors developed a bio-economic model and used stochastic partial budgeting approach to simulate the economic consequences of enhancing solid and slatted concrete floors with soft rubber covering.
Findings
The findings highlight that keeping herds on solid and slatted concrete floor surfaces with soft rubber coverings is a profitable solution, compared with keeping herds on solid and slatted concrete floors without a soft covering. The profit per cow when kept on a solid concrete floor with soft rubber covering increased by 13%–16% depending on the breed.
Practical implications
Promoting farm investments such as improvement in flooring solution, which have both economic and animal welfare incentives, is a potential way of promoting sustainable dairy production. Farmers may make investments in improved floors, resulting in enhanced animal welfare and economic outcomes necessary for sustaining dairy production.
Originality/value
This literature review indicated that the economic impact of investment in specific types of floor improvement solutions, investment costs and financial outcomes have received little attention. This study provides insights needed for a more informed decision-making process when selecting optimal flooring solutions for new and renovated barns that improve both animal welfare and ease the burden on farmers and public financial support.
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Abstract
Purpose
Promoting electric vehicles (EVs) is an effective way to achieve carbon neutrality. If EVs are widely adopted, this will undoubtedly be good for the environment. The purpose of this study is to analyze the impact of network externalities and subsidy on the strategies of manufacturer under a carbon neutrality constraint.
Design/methodology/approach
In this paper, the authors propose a game-theoretic framework in an EVs supply chain consisting of a government, a manufacturer and a group of consumers. The authors examine two subsidy options and explain the choice of optimal strategies for government and manufacturer.
Findings
First, the authors find that the both network externalities of charging stations and government subsidy can promote the EV market. Second, under a relaxed carbon neutrality constraint, even if the government’s purchase subsidy investment is larger than the carbon emission reduction technology subsidy investment, the purchase subsidy policy is still optimal. Third, under a strict carbon neutrality constraint, when the cost coefficient of carbon emission reduction and the effectiveness of carbon emission reduction technology are larger, social welfare will instead decrease with the increase of the effectiveness of emission reduction technology and then, the manufacturer’s investment in carbon emission reduction technology is lower. In the extended model, the authors find the effectiveness of carbon emission reduction technology can also promote the EV market and social welfare (or consumer surplus) is the same whatever the subsidy strategy.
Practical implications
The network externalities of charging stations and the subsidy effect of the government have a superimposition effect on the promotion of EVs. When the network effect of charging stations is relatively strong, government can withdraw from the subsidized market. When the network effect of charging stations is relatively weak, government can intervene appropriately.
Originality/value
Comparing previous studies, this study reveals the impact of government intervention, network effects and carbon neutrality constraints on the EV supply chain. From a sustainability perspective, these insights are compelling for both EV manufacturers and policymakers.
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Gideon Danso-Abbeam, Abiodun Akintunde Ogundeji and Samuel Fosu
Efforts to reduce farmers' market risks and improve buyers' access to farm commodities have encouraged contract farming (CF) in Ghana's cashew sector in recent years…
Abstract
Purpose
Efforts to reduce farmers' market risks and improve buyers' access to farm commodities have encouraged contract farming (CF) in Ghana's cashew sector in recent years. Consequently, the existence of CF shows that farmers who use it may be benefiting from it, as it is their economic responsibility to decide how to sell agricultural products. However, the magnitudes of these benefits or otherwise have been inadequately explored. This paper aims to empirically estimate the impact of CF on farm performance and welfare of smallholder cashew farmers.
Design/methodology/approach
The study used probit-two-stage least square (probit-2sls) as a primary estimator to account for self-selection bias and endogeneity that could arise from both observed and unobserved heterogeneities among farming households to estimate the causal effects of CF on farm performance and household welfare.
Findings
The results indicated that participation in CF contribute significantly to the gains in farm performance (price margins, yields and net farm revenue) and welfare (consumption expenditure per capita), and that the non-participants of CF would have benefited substantially if they had participated. An analysis of the farm size disaggregated into small, medium and large with regards to the outcome variables produces mixed results.
Research limitations/implications
It can be concluded that participating in CF enhances farm performance and household welfare.
Originality/value
While many other studies do not account for changes in farm performance and welfare due to differences in farm size or other observed factors, this study fills a crucial void.
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Rizka Amalia Nugrahapsari, Abdul Muis Hasibuan and Tanti Novianti
This study aims to investigate the factors influencing the citrus trade in Indonesia, the effects of tariff and non-tariff policies on the industry and the welfare of producers…
Abstract
Purpose
This study aims to investigate the factors influencing the citrus trade in Indonesia, the effects of tariff and non-tariff policies on the industry and the welfare of producers and consumers.
Design/methodology/approach
The research used annual series data from 1991 to 2021 and employed inferential, simulation, and descriptive analyses. The two-stage least squares (2SLS) of 19 simultaneous equations were used to estimate parameters.
Findings
The results indicate that free trade policies and restrictions have influenced the citrus industry, leading to a reduction in Indonesian citrus imports, and increased consumer and producer prices. However, eliminating import tariff policies on citrus from China and import restrictions increased producer surplus while decreasing consumer surplus, government revenue, and total welfare. Therefore, trade policies should be combined with non-trade policies such as citrus region development policies and advancing cultivation technology.
Originality/value
This study provides empirical evidence for the Indonesian government to formulate effective citrus trade and development policies. It emphasizes the importance of carefully considering the impact of trade policy on the citrus industry and the need to implement non-trade policies such as citrus zone development policies and advancing cultivation technology to benefit both producers and consumers.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-02-2023-0148
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Xueting Gong, Dinkneh Gebre Borojo and Jiang Yushi
Due to their limited capacity for adaptation and dependence on natural resources for economic growth, developing countries (DCs) tend to be more prone to climate change. It is…
Abstract
Purpose
Due to their limited capacity for adaptation and dependence on natural resources for economic growth, developing countries (DCs) tend to be more prone to climate change. It is argued that climate finance (CF) is a significant financial innovation to mitigate the negative effects of climate variation. However, the heterogeneous impacts of CF on environmental sustainability (ES) and social welfare (SW) have been masked. Thus, this study aims to investigate the heterogeneous effects of CF on ES and SW in 80 CF receipt DCs from 2002 to 2018. This study also aims to investigate the effects of CF on ES and SW based on population size, income heterogeneity and the type of CF.
Design/methodology/approach
The method of moments quantile regression (MMQR) with fixed effects is utilized. Alternatively, the fully modified least square (FMOLS) and dynamic least square (DOLS) estimators are used for the robustness test.
Findings
The findings revealed that DCs with the lowest and middle quantiles of EF, carbon dioxide (CO2) emissions and human development exhibit large beneficial impacts of CF on ES and SW. In contrast, the positive effects of CF on ES breakdown for countries with the largest distributions of EF and CO2 emissions. Besides, the impacts of CF on ES and SW depend on income heterogeneity, population size and the type of CF.
Practical implications
This study calls for a framework to integrate CF into all economic development decisions to strengthen climate-resilient SW and ES in DCs.
Originality/value
To the best of the authors’ knowledge, this is the first study to investigate the effects of CF on ES and SW in a wide range of DCs. Thus, it complements existing related literature focusing on the effects of CF on ES and SW.
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Francesco Busato, Maria Ferrara and Monica Varlese
This paper analyzes real and welfare effects of a permanent change in inflation rate, focusing on macroprudential policy’ role and its interaction with monetary policy.
Abstract
Purpose
This paper analyzes real and welfare effects of a permanent change in inflation rate, focusing on macroprudential policy’ role and its interaction with monetary policy.
Design/methodology/approach
While investigating disinflation costs, the authors simulate a medium-scale dynamic general equilibrium model with borrowing constraints, credit frictions and macroprudential authority.
Findings
Providing discussions on different policy scenarios in a context where still it is expected high inflation, there are three key contributions. First, when macroprudential authority actively operates to improve financial stability, losses caused by disinflation are limited. Second, a Taylor rule directly responding to financial variables might entail a trade-off between price and financial stability objectives, by increasing disinflation costs. Third, disinflation is welfare improving for savers, while costly for borrowers and banks. Indeed, while savers benefit from policies reducing price stickiness distortion, borrowers are worried about credit frictions, coming from collateral constraint.
Practical implications
The paper suggests threefold policy implications: the macroprudential authority should actively intervene during a disinflation process to minimize costs and financial instability deriving from it; policymakers should implement a disinflationary policy stabilizing also output; the central bank and the macroprudential regulator should pursue financial and price stability goals, separately.
Originality/value
This paper is the first attempt to study effects of a permanent inflation target reduction in focusing on the macroprudential policy’ role.
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Jie Wu, Nan Guo, Zhixin Chen and Xiang Ji
The purpose of this paper is to analyze manufacturers' production decisions and governments' low-carbon policies in the context of influencer spillover effects.
Abstract
Purpose
The purpose of this paper is to analyze manufacturers' production decisions and governments' low-carbon policies in the context of influencer spillover effects.
Design/methodology/approach
This paper investigates the impact of the social influencer spillover effect on manufacturers' production decisions when they collaborate with intermediary platforms to sell products through marketplace or reseller modes. Game theory and static numerical comparison are used to analyze our models.
Findings
Firstly, under low-carbon policies, the spillover effect does not always benefit manufacturer profits and changes non-monotonically with an increasing spillover effect. Secondly, in cases where there are both a carbon emission constraint and a spillover effect present, if either the manufacturer or intermediary platform holds a strong position, then marketplace mode benefits manufacturer profits. Thirdly, regardless of business mode used when environmental damage coefficient is high for products; government should implement cap-and-trade regulation to optimize social welfare while reducing manufacturers’ carbon emissions.
Practical implications
This study offers theoretical and practical research support to assist manufacturers in optimizing production decisions for compliance with carbon emission limits, enhancing profits through the development of effective influencer marketing strategies, and providing strategies to mitigate carbon emissions and enhance social welfare while sustaining manufacturing activities.
Originality/value
This paper addresses the limitations of prior research by examining how the social influencer spillover effect influences manufacturers' business mode choices under government low-carbon policies and analyzing the social welfare of different carbon emission restrictions when such spillovers occur. Our findings provide valuable insights for manufacturers in selecting optimal marketing strategies and business modes and decision-makers in implementing effective regulations.
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